October 26, 2017
Traders’ Almanac
Brent Crude Oil - Testing
Critical Resistance
BRENT CRUDE OIL – Testing critical resistance Analysts
TAS OFFSHORE – New up leg has been established Nik Ihsan Raja Abdullah, MSTA, CFTe
EA TECHNIQUE – Breakout from “flag” pattern (603) 2297 8694
nikmohdihsan.ra@maybank-ib.com
CRUDE PALM OIL – Ready to climb higher
KLCI INDEX FUTURES – Rebound mood Tee Sze Chiah
(603) 2082 6858
TECHNICAL
Market Overview szechiah.t@maybank-ib.com
FBMKLCI rose 2.91pts to close at 1,739.05 yesterday, led by
Market Summaries
bargain hunting on selected blue chips like GENM, RHBBANK and
Index Changes (%) Close Momentum
ASTRO. Market breadth, however, remained negative with losers
outpacing gainers by 467 to 362. A total of 2.46b shares worth FBMKLCI 0.17 1,739.05 NEUTRAL
DJIA (-0.48) 23,329.5 UP
MYR1.89b changed hands. Expect another volatile session today
MSCI W (-0.39) 2,023.48 DOWN
as investors may stay risk-off ahead of ECB meeting and 2018
MSCI AP 0.21 686.19 UP
Budget. The setback in overnight US markets will also weighed on
FCPO 1.01 2,805 UP
sentiment. Technically, we expect FBMKLCI to trade between BRENT 0.19 58.44 UP
Malaysia
1,735 and 1,745. Downside supports are 1,729 and 1,713. GOLD 0.03 1,275.40 UP
USDMYR 0.08 4.2352 NEUTRAL
(Sources: Bloomberg)
TODAY’S HIGHLIGHT – BRENT CRUDE OIL, MAKE-IT OR BREAK-IT MOVE (Candlestick & 3 Line Break Chart)
We had earlier predicted that Brent Crude Oil to extend its upward trajectory after making a recovery from the
USD53.40 low (refer to Traders’ Almanac date 6 Oct 2017). Providentially, oil price did hit our target of
USD58.30. That said, it is now treading in a critical resistance zone. With the candles hovering near the 61.8%
Fibonacci Retracement level and Stochastic showing some signs of exhaustion, we expect selling pressure to
surface. The silver-lining here is that we have yet to see a clear reversal signal yet. Therefore, we are still
maintaining our bullish view for now. A positive close above USD58.40 may prolong the upward move towards
USD61.00 in the near-term. On the flip side, a fall below USD57.80 will likely drag Brent Crude Oil towards the
next support at USD55.00.
THIS REPORT HAS BEEN PREPARED BY MAYBANK INVESTMENT BANK BERHAD PP16832/01/2013 (031128)
SEE PAGE 5 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
Technical Research
TRADING IDEAS
TAS OFFSHORE BERHAD, DAILY CANDLESTICK CHART (MYR0.330)
STRATEGY:
ACCUMULATE (TECHNICAL)
The gap up above “Ichimoku
Cloud” last Tuesday has set a
new bullish tone for the
stock. Our view is also
reinforced by a strong close
yesterday. Given positive
readings in both Stochastic
and MACD, we opine that
share price may challenge its
immediate resistances soon.
ACCUMULATION LEVEL STOP-LOSS ESTIMATED RESISTANCE ESTIMATED TIMEFRAME
MYR0.320 ~ MYR0.340 BELOW MYR0.310 MYR0.355, MYR0.395 8 weeks
E.A. TECHNIQUE (M) BERHAD, CANDLESTICK CHART (MYR0.505)
STRATEGY:
ACCUMULATE (TECHNICAL)
The pullback from MYR0.56
high saw share price
consolidating in a “Flag”
pattern. Yesterday’s
breakout, on the back of
higher trading volume and
positive readings in Stochastic
and MACD indicators, suggests
that a new up leg is taking
place.
ACCUMULATION LEVEL STOP-LOSS ESTIMATED RESISTANCE ESTIMATED TIMEFRAME
MYR0.490 ~ MYR0.510 BELOW MYR0.465 MYR0.560, MYR0.620 8 weeks
October 26, 2017 2
Technical Research
COMMODITY & DERIVATIVES WATCH
CRUDE PALM OIL FUTURES (FCPO) ACTIVE CONTRACT, HOURLY CANDLESTICK CHART (MYR2,806)
INTRADAY TREND
EXPECTATION:
We use hourly chart to analyse
potential movement of FCPO
for intraday trading.
The pullback during morning
session was indeed a temporary
setback as fresh buying interest
emerged subsequently and
lifted FCPO towards its previous
high of USD2,808. We expect
FCPO to retest the upper
resistance in the near-term
given a slight improvement in
momentum.
SUPPORT RESISTANCE SHORT-TERM MOMENTUM SHORT-TERM TREND
MYR2,761 MYR2,744 MYR2,833 MYR2,887 UP UP
KLCI INDEX FUTURES, SPOT CONTRACT, HOURLY CANDLESTICK CHART (1,739.50)
INTRADAY TREND
EXPECTATION:
We use hourly chart to analyse
potential movement of FKLI for
intraday trading.
FKLI tested its lower support at
1,736 yesterday before buying
momentum picked up. We
expect the rebound to continue
today, with the index likely
revisiting its previous high of
1,748 in the near-term.
SUPPORT RESISTANCE SHORT-TERM MOMENTUM SHORT-TERM TREND
1,736.00 1,723.00 1,748.00 1,754.50 REBOUND UP
October 26, 2017 3
